Eight years after it was sold to private developers, the 17-acre Mumbai Textile mills is set to become home to swanky residential towers. The Lodha Group, its new owners, will start bookings next week for its residential project, Blue Moon, and, in a first, will select buyers using a draw.
The new owners have launched an Initial Public Offering (IPO)-like scheme wherein the consumer has to pay Rs9 lakh upfront, and submit an application form along with three preferences for his choice of flat. This is the first time that a private developer is using such a system to select buyers in the city.
The forms will be collected between January 18 and January 27 and buyers will be selected through a draw. The results will be announced within a week of form submissions.
The mill was bought by the DLF group for a record Rs702 crore in 2005. The real estate giant had announced plans to build Mumbai biggest mall on the land, but these did not bear fruit owing to various modifications over the years. DLF eventually sold the land to the Lodha Group in October last year, to be developed as a residential plot.
R Karthik, chief marketing officer, Lodha, said that the IPO model was introduced as the company anticipates a huge response to the pre-launch scheme.
“We are offering a special discounted price and there are flats with an even smaller configuration. This has attracted a lot of buyers,” he said. The two buildings, Alpha and Gamma, would be priced as Rs23,391 per square feet and Rs24,471 per square feet respectively.
According to real estate expert Ajay Chaturvedi, the Delhi-based DLF had failed to guage the Mumbai market.
“In those days, malls and commercial complexes were in high demand and DLF decided to take a plunge. However as those plans didn’t work out, DLF decided to make the plot semi-commercial and finally, residential,” said Chaturvedi. “DLF eventually struck a good deal which will help them reduce their debts,” he added.